Subsidies are going up from £58,000 to £70,000 for RSLs in city and urban areas and rising from £46,000 to £57,000 for council homes, following recommendations from an expert group, Housing Minister Margaret Burgess announced today.
Recommendations on increasing subsidy levels made by the group, which included housing associations and council representatives, have been agreed in full and will now be implemented for all new grant applications.
Grant subsidies have been increased by up to £14,000 for each new home with incentives being offered for those homes achieving the higher greener standard.
This means for RSLs in city and urban areas subsidy goes up from £58,000 to £70,000, and for council homes from £46,000 to £57,000.
Ms Burgess said: “Housing is at the heart of our ambitions to create a fairer and prosperous country and councils and registered social landlords will play a critical role in realising that.
“We have a strong record on housing, having exceeded our target to deliver 30,000 affordable homes in this Parliament. We also started a new generation of council house building and have taken steps to safeguard social housing for the future by abolishing the right to buy.
“Our new target will be to deliver at least 50,000 affordable homes, which will be backed by over £3 billion of investment.
“The new target is a 67 per cent increase in affordable housing supply, with 70 per cent of the new target being for social rent.”